• Title/Summary/Keyword: Service Failure

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An Exploratory Study for the Telecommunications Service Failure Cases in South Korea (정보통신 서비스의 실패 요인: 한국의 텔레콤 서비스시장에서의 실패사례연구)

  • 안재현;권재원;김명수;이동주;이상윤;한상필
    • Journal of the Korean Operations Research and Management Science Society
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    • v.27 no.3
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    • pp.115-133
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    • 2002
  • In this paper, 15 South Korean telecommunications service failure cases were analyzed. Through the in-depth case study, 8 factors were found to be the major causes contributing to the telecommunications service failure. They were (1) ineffective marketing, (2) poor demand forecasting due to misjudgment of customer preference, (3) failure to satisfy technical specifications, (4) loss of cost advantage due to the price cut of competing services or new entry with lower price, (5) loss of utility advantage due to the increased utility of competing services or new entry with higher utility (6) decrease of market attractiveness due to change of customer preference, (7) impact of government policy, and (8) insufficient or low quality of contents. Additional analysis was done to derive managerial implications to the new telecommunications service development strategy. The findings from the paper will provide valuable Insight to the successful Implementation of new service development and service provisioning processes.

Negative Spillover Effects of Other-Customer Failure in Airline Context

  • Kim, Mi-Jeong;Park, Chul-Ju;Park, Jae-Sung
    • Journal of Distribution Science
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    • v.15 no.1
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    • pp.15-20
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    • 2017
  • Purpose - Other customers within the same service environment do influence a customer' attitude and behavior toward a service firm. Specially, other customers' misbehaviour and various service problems stemmed from them could make the other customers suffer some bad experiences. However, there are few studies to answer how the spillover effect of a service failure arisen from other customers' misbehavior. This study is aimed to examine how service failure due to the dysfunctional behavior of other customers has negative effects on customer evaluation with the service provider. Research design, data, and methodology - Data were collected from a survey based on consumers' retrospective experiences in airline service context. The hypothesized relationships were tested conducting structural equation modeling. Results - Our results show that the attribution of a firm responsibility for other-customer failure has a positive influence on customer's recovery expectation, in turn, it is negatively related to customer satisfaction. Furthermore, perceived service provider's efforts positively influence customer satisfaction. Conclusions - Although a service failure was caused by other customer's misbehavior, employees should be able to alleviate any bad feelings of the affected customers. Furthermore, service providers should provide proper recovery efforts for solving problems caused by the other customers for the wounded customers.

Internal Service Recovery's Influence on Frontline Service Employees' Satisfaction and Loyalty

  • Gong, Taeshik
    • Asia Marketing Journal
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    • v.17 no.2
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    • pp.39-62
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    • 2015
  • Relatively little studies have investigated employee recovery from internal service failure, especially from the employees' perspective. When handling customer complaints, employees must not only deal with legitimate customer demands after a service failure, such as providing an apology, rectifying the problem, and offering compensation, but they must also manage illegitimate dysfunctional customers, who may yell, threaten, and even physically harm the employee. These negative experiences can have strong effects, and employees can exhibit higher levels of stress such as burnout and emotional labor, which have been linked to dissatisfaction, tension and anxiety, reduced performance and effectiveness, and a greater propensity to leave the firm, ultimately leading to negative financial consequences for the firm. These conditions result in internal service failure and create the need to recover employees-in other words, internal service recovery. However, little research has examined this issue so far. The purpose of the current study, therefore, is to investigate the relationship between internal service recovery and employee outcomes. A pre-test, post-test between-subjects experimental design was developed. Participants were 166 part-time students who were working full-time. The average age of the participants was 36.74 years, and 57.50% of them were female. The average length of employment was 13 years. Participants were randomly assigned to one of four groups of approximately equal size. Three of the groups were subjected to an experimental situation involving an internal service failure, while one group was not exposed to failure, thereby acting as a control group. This study contributes to the service marketing literature in several ways. First, the study extends service failure and/or recovery research by examining recovery in an employee context. Second, this study attempts to measure internal service recovery and to empirically demonstrate its relationship to employee outcomes. Third, this investigation emphasizes the managerial importance of internal service recovery. For example, understanding the nature of the relationships between internal service recovery and its consequences can improve the effectiveness and efficiency of managers' resource allocation decisions.

The Influence of Service Recovery Justice on Intention to Recommend for Retailer

  • SHIN, Yongsun;KIM, Moonseop
    • Journal of Distribution Science
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    • v.18 no.2
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    • pp.91-98
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    • 2020
  • Purpose: This research aimed to suggest retailing companies some ways to enhance customer satisfaction with service recovery and recommendation intention towards these companies. For this purpose, current study examined the relationships among service recovery justice, service failure severity, customer trust, recovery satisfaction and intention to recommend and the moderating role of ego-resilience. Research design, data and methodology: Current study developed a structural equation model in which perceived service recovery justice is a predictor, service failure severity, customer trust, recovery satisfaction are mediators, intention to recommend is a dependent variable and the ego-resilience is a moderator between the perceived service recovery justice and the customer trust and the recovery satisfaction. Data were collected from customers who experienced service failures from retailers. A total of 400 questionnaires were collected and 365 samples were used for analysis after deleting data having missing value. SPSS 25.0 and AMOS 24.0 were used to test the validity, reliability, and structural equation modeling. Results: Empirical results showed that the perceived service recovery justice had a negative influence on the perceived service failure severity and a positive influence on the customer trust and the recovery satisfaction. These results indicate that when customers perceive the service recovery justice more highly, they perceive the service failure less severe but they perceive the retailer more trustworthy and are satisfied with service recovery. In addition, the customer trust and the recovery satisfaction had a positive influence on the intention to recommend. These results indicate that when customers perceive the retailer more trustworthy and are satisfied with service recovery, they are more intend to recommend the retailer. Moreover, the influence of the perceived service recovery justice on the customer trust and the recovery satisfaction was moderated by the ego-resilience. Conclusions: This study contributed to the service recovery literature by proving the relationship among service recovery justice, service failure severity, customer trust, recovery satisfaction and intention to recommend. Moreover, current research introduced the ego-resilience into service recovery research area and revealed the moderation role of the ego-resilience. Managerially, this research suggested retailing companies some ways to effectively recover from service failure.

Effect of Perception Towards Service Failure Seriousness By Social Commerce Companies and Service Providers on Repurchase Intention and Revisit Intention (소셜커머스와 서비스제공 업체의 서비스실패 심각성 지각이 재구매 의도와 재방문 의도에 미치는 영향)

  • Yun, Dae Hoong;Park, Byung Nam
    • Journal of Service Research and Studies
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    • v.6 no.3
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    • pp.107-122
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    • 2016
  • This study was intended to examine the effect that the quality of service delivered by social commercial companies and service providers and perception towards seriousness of service failure would have on the intention of repurchase and revisit. 10 hypotheses were derived from literature review. excluding the questionnaires that contained many missing values or inconsistent or insincere answers. The results of this study can be summarized from 3 aspects. First, it was found that the quality of service delivered by social commerce companies had a statistically significant effect on social commerce companies' service failure(Hypothesis 1) and social commerce company repurchase intention(Hypothesis 3) in connection with the effect that the quality of service delivered by social commerce companies and service providers would have. The quality of service delivered by service providers was found to have a statistically significant effect on service providers' service failure(Hypothesis 2) and service provider revisit intention(Hypothesis 4). Second, the perception towards seriousness of service failure by social commerce companies and service providers was found to have the following effect: The service failure by social commerce companies(Hypothesis 5) was found to have a statistically significant effect on service provider revisit intention(Hypothesis 8), but did not have a statistically significant effect on social commerce company repurchase intention (Hypothesis 6). The service failure by service providers was found to be statistically significant for service provider revisit intention(Hypothesis 7) and social commerce companies purchase intention(Hypothesis 9). Finally, service provider revisit intention was found to be statistically significant for social commerce company repurchase intention(Hypothesis 10).

The Causal Relationship on Quality-centered Organizational Culture and Its Impact on Service Failure and Service Recovery

  • Suk, Jong-Bae;Chung, Soong-Hwan;Choi, Kang-Hwa;Park, Ji-Young
    • International Journal of Quality Innovation
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    • v.10 no.1
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    • pp.37-51
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    • 2009
  • The purpose of TQM (Total Quality Management)-centered organizational culture is to enhance the efficiency of business through the proper allocation and concentration of restricted resources. In order to maximize the corporate profitability through customer satisfaction, what kind of, when and how many resources should be allocated and managed to the preventive TQM activities and corrective TQM activities have become a very important decision making factors at the point of high management. This study aims to identify the causal relationships of quality-centered organizational culture on service quality and customer satisfaction relating to service failure in food service industry. And this study is intended to discover the factors of quality-centered organizational culture which impacts on service recovery justice after service failure happens, and it can be helpful for the top managers to make a decision to how to form corporate structural culture.

The Effects of Service Failure and Recovery on Customer Satisfaction In the Airline Service Encounter (항공사의 서비스 실패 및 회복노력이 서비스 접점의 고객만족에 미치는 영향)

  • Kim Hyoung-Soon;Jin Li-Yin
    • Journal of the Korean Operations Research and Management Science Society
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    • v.29 no.4
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    • pp.95-116
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    • 2004
  • This study will attempt to build an integrated model of the customer satisfaction process with service encounter in a comprehensive point of view including the expectancy-disconfirmation theory, justice theory, and attribution theory. In addition, this study will attempt to examine the influence of service failure-related variables and service recovery-related variables on customer satisfaction in the airline firms' service failure and recovery situation. The results showed that the higher the controllability and severity of the failure, the more positive influence on expectancy of recovery and more negative influence on the recovery satisfaction increased. They also showed that the higher procedural recovery efforts and distributive/interactional recovery efforts, the more positive influence on perceived recovery performance and recovery satisfaction also increased. It was found that the recovery satisfaction with service encounter depended on the extent to which the customer's perception of recovery efforts confirmed the expectancy of recovery. Also it was found that perceived recovery performance has an effect on recovery satisfaction through the mediation of recovery disconfirmation indirectly as well as directly.

Assessing the Damage: An Exploratory Examination of Electronic Word of Mouth (손해평고(损害评估): 대전자구비행소적탐색성고찰(对电子口碑行销的探索性考察))

  • Funches, Venessa Martin;Foxx, William;Park, Eun-Joo;Kim, Eun-Young
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.188-198
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    • 2010
  • This study attempts to examine the influence that negative WOM (NWOM) has in an online context. It specifically focuses on the impact of the service failure description and the perceived intention of the communication provider on consumer evaluations of firm competence, attitude toward the firm, positive word of mouth and behavioral intentions. Studies of communication persuasiveness focus on "who says what; to whom; in which channel; with what effect (Chiu 2007)." In this research study, we examine electronic web posting, particularly focusing on two aspects of "what": the level of service failure communicated and perceived intention of the individual posting. It stands to reason electronic NWOM that appears to be trying to damage a product’s or firm's reputation will be viewed as more biased and will thus be considered as less credible. According to attribution theory, people search for the causes of events especially those that are negative and unexpected (Weiner 2006). Hennig-Thurau and Walsh (2003) state "since the reader has only limited knowledge and trust of the author of an online articulation the quality of the contribution could be expected to serve as a potent moderator of the articulation-behavior relationship. We therefore posit the following hypotheses: H1. Subjects exposed to electronic NWOM describing a high level of service failure will provide lower scores on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention than will subjects exposed to electronic NWOM describing a low level of service failure. H2. Subjects exposed to electronic NWOM with a warning intent will provide lower scores on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention than will subjects exposed to electronic NWOM with a vengeful intent. H3. Level of service failure in electronic NWOM will interact with the perceived intention of the electronic NWOM, such that there will be a decrease in mean response on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention from electronic NWOM with a warning intent to a vengeful intent. The main study involved a2 (service failure severity) x2 (NWOM with warning versus vengeful intent) factorial experiment. Stimuli were presented to subjects online using a mock online web posting. The scenario described a service failure associated with non-acceptance of a gift card in a brick-and-mortar retail establishment. A national sample was recruited through an online research firm. A total of 113 subjects participated in the study. A total of 104 surveys were analyzed. The scenario was perceived to be realistic with 92.3% giving the scenario a greater than average response. Manipulations were satisfactory. Measures were pre-tested and validated. Items were analyzed and found reliable and valid. MANOVA results found the multivariate interaction was not significant, allowing our interpretation to proceed to the main effects. Significant main effects were found for post intent and service failure severity. The post intent main effect was attributable to attitude toward the firm, positive word of mouth and behavioral intention. The service failure severity main effect was attributable to all four dependent variables: firm competence, attitude toward the firm, positive word of mouth and behavioral intention. Specifically, firm competence for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Attitude toward the firm for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Positive word of mouth for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Behavioral intention for electronic NWOM describing high severity of service failure was lower for electronic NWOM describing low severity of service failure. Therefore, H1a, H1b, H1c and H1d were all supported. In addition, attitude toward the firm for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Positive word of mouth for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Behavioral intention for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Thus, H2b, H2c and H2d were supported. However, H2a was not supported though results were in the hypothesized direction. Otherwise, there was no significant multivariate service failure severity by post intent interaction, nor was there a significant univariate service failure severity by post intent interaction for any of the three hypothesized variables. Thus, H3 was not supported for any of the four hypothesized variables. This study has research and managerial implications. The findings of this study support prior research that service failure severity impacts consumer perceptions, attitude, positive word of mouth and behavioral intentions (Weun et al. 2004). Of further relevance, this response is evidenced in the online context, suggesting the need for firms to engage in serious focused service recovery efforts. With respect to perceived intention of electronic NWOM, the findings support prior research suggesting reader's attributions of the intentions of a source influence the strength of its impact on perceptions, attitude, positive word of mouth and behavioral intentions. The implication for managers suggests while consumers do find online communications to be credible and influential, not all communications are weighted the same. A benefit of electronic WOM, even when it may be potentially damaging, is it can be monitored for potential problems and additionally offers the possibility of redress.

A Study on the Influence of Delivery App Service Failure Factors on Consumer Conflict and Consumer Complaint Behavior (배달앱 서비스 실패요인이 소비자 갈등과 소비자의 불평행동에 미치는 영향에 관한 연구)

  • Lee, Jae-Hak
    • Journal of Arbitration Studies
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    • v.31 no.1
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    • pp.173-194
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    • 2021
  • This study was conducted to investigate the effect of the factors of delivery app service failure on consumption well conflict emotion and complaining behavior targeting consumers with experience using delivery apps, and the results of the study are summarized as follows. First, when looking at the demographic analysis, the proportion of men was 58.1% and women were 41.9%, and the age group was the highest with 91.9% in their 20s. Second, as a result of testing hypothesis 1 that the factor of delivery app service failure will have a significant influence on consumer conflict emotions, failure to provide app information and failure to deliver/food service showed a significant positive (+) relationship. Third, as a result of the verification of Hypothesis 2, that consumer conflict emotions will have a significant effect on the consumer's continued use intention, it was found to be insignificant and rejected. Lastly, hypothesis 3 that consumer conflict emotions will have a significant effect on consumer complaints behavior is that negative word of mouth behavior, complaint behavior from service providers, and complaint behavior from service managers were adopted, but the complaint behavior was rejected by third parties.

Evaluation Model of Service Reliability Using a Service Blueprint and FTA (서비스 블루프린트와 FTA를 이용한 서비스 신뢰도 평가모델)

  • Yoo, Jung-Sang;Oh, Hyung-Sool
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.35 no.4
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    • pp.194-201
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    • 2012
  • Because the difference between products and services are getting less and less, service and manufacturing companies' efforts are increasingly focused on utilizing services to satisfy customers' needs under today's competitive market environment. The value of services depends on service reliability that is identified by satisfaction derived from the relationship between customer needs and service providers. In this paper, we extend concepts from the fault tree analysis for reliability analysis of tangible systems to services. We use an event-based process model to facilitate service design and represent the relationships between functions and failures in a service. The objective of this research is to propose a method for evaluating service reliability based on service processes using service blueprint and FTA. We can identify the failure mode of service in a service delivery process with a service blueprint. The fuzzy membership function is used to characterize the probability of failure based on linguistic terms. FTA is employed to estimate the reliability of service delivery processes with risk factors that are represented as potential failure causes. To demonstrate implementation of the proposed method, we use a case study involving a typical automotive service operation.